Housing Authority Oks 1985 Budget $1.9-million In Expenditures

The Easton Housing Authority yesterday approved a $1.9-million 1985 budget and learned that a Montgomery County consultant has determined that computerizing authority operations is feasible.

Total projected operating expenditures this year are $1,938,876, compared to almost $1.6 million in actual costs last year. Included in the $1.9-million figure is a $45,882 withdrawal from the authority's capital reserve fund that stood at $720,704 at the end of last year.

Operating receipts from rental units and other sources for 1985 are projected at $1,047,630, while the federal Department of Housing and Urban Development will contribute $845,364 in operating subsidies, for $1,892,994 in total operating receipts.

Gary A. Smith, authority executive director, said one reason why the budget is up about $300,000 is because of a request for an extra $100,000 from HUD. Smith said he questioned HUD's formula for the authority's 1984 allocation and was requesting it be revised to reflect the extra funds.

Salaries for the authority's 15 employees will increase 7 percent this year, with the exception of two employees who will receive larger increases - primarily to bring their salaries in line with their job responsibilities. A new post of inventory and maintenance clerk has been inserted into the budget. No one has been hired for the job yet, Smith said. Smith's salary, the highest of the 15, will go to $35,975 this year.

The budget will be sent to federal officials for further scrutiny.

Projects under this year's spending plan include the installation of smoke alarms in some authority buildings and the resurfacing of the Delaware Terrace housing project parking areas.

Smith said "it was a management prerogative" on his part not to submit his 1985 budget until now because he wanted to wait as long as possible to see what might be approved under the authority's proposed $5.2-million Comprehensive Improvement Assistance Program grant application, now pending before HUD.

The CIAP application, which Smith said was "still in the running" for approval, is targeted mainly for the general reconditioning of 278 units in Delaware Terrace and the Delaware Terrace Annex housing projects. "I have to feel a certain reserved optimism about that and go on with my budget," Smith said. "Also, I can't wait any longer." Announcements on successful CIAP applications will be made sometime between Aug. 15 and Oct. 15.

"I consider some of those items (in the CIAP application) so important that I would have included them in the operating budget," Smith said. "I they aren't approved by CIAP, I'm going to have some problems. I was holding out until the very last minute hoping they would be approved by CIAP. In view of the fact that Easton's CIAP application is still in the running, I had to get off the dime (to avoid criticism)." Smith said the authority has not been criticized by HUD for submitting its budget at this time.

The authority's budget was submitted to HUD July 11 and HUD has 45 days to approve the plan, Smith said.

The good condition of the authority's finances has been achieved, Smith said, because the authority board members have allowed him to operate economically and have in sisted on "serious fiscal accountability." Smith said the authority had about $300,000 in its capital reserve fund in 1982 when he became executive director and was not as bad off as was reported, although HUD was keeping a close eye on things.

Smith said HUD recommended the authority delve into the substantial capital reserve fund to balance its budget so funds would not remain tied up. The maximum permissible capital reserve for the Easton Authority is $886,467. It is estimated the reserve will be at $677,990 at the end of the year.

J. L. Heller & Company of Blue Bell has told the authority there is a "high potential" for automatic data processing in the general ledger, tenant selection, accounts payable and income areas; a "high to medium need" to automate materials inventory, payroll and work orders, and a "medium to low need" to automate fixed assets, personnel and purchasing.

Smith said the estimated cost for computerizing authority operations is $112,500. He said funds for the proposed project have been requested in the CIAP application. If that line item of the application is removed, Smith said the authority will have to review the matter. He said it would have to wait at least until next year's budget to be reconsidered.

Smith said Easton has joined with three other housing authorities in the state in the search for computer systems. "We're going to see if there is any safety in numbers," Smith said.

Housing authorities in Chester County, Lancaster and York joined with Easton in hiring Heller to complete feasibility studies on their operations. Each authority paid $3,000 for their feasibility study. Requests for proposals to gets bids on computer systems have also been developed by Heller and were sent out Monday. The RFP will cost up to an additional $3,000.